Oil and Industrial Supply Imports Surged in July—What to Know

The United States imports the most goods from the European Union, Mexico, Canada, and China.

Shipping containers at the Port of Baltimore in Baltimore on Aug. 7, 2025. Jim Watson/AFP via Getty Images

The U.S. goods trade deficit widened in July as imports of oil and industrial supplies surged, driven by strong domestic demand and possible stockpiling by importers ahead of President Donald Trump’s new tariff rates for individual countries that took effect on Aug. 7.

According to data released by the U.S. Census Bureau on Aug. 29, the U.S. goods trade deficit jumped 22.1 percent in July from June to $103.6 billion, driven largely by a surge in imports.

Goods imports totaled $281.5 billion in July, up 7.1 percent from the previous month and 1.7 percent from a year earlier. Increase in imports was mainly driven by a 25.4 percent jump in industrial supplies, including petroleum, and a 4.8 percent increase in capital goods.

Meanwhile, exports stood at $177.9 billion in July, edging down just 0.1 percent from June.

US Deficit Driven by Product Categories

From January to June this year, the United States ran significant surpluses in aerospace products ($39.8 billion) and mineral fuels and oils ($32.9 billion). However, it had sizable trade deficits in machinery ($190 billion), electronics ($131.6 billion), vehicles ($125.8 billion), and pharmaceuticals ($100.7 billion), reflecting heavy reliance on other countries for these goods.

Top Suppliers to the US

The United States imports the most goods from the European Union, Mexico, Canada, and China.

From January to June, imports from the EU and Mexico increased by 18.3 percent and 6.3 percent, respectively, to $349.1 billion and $264.4 billion.

However, imports from Canada fell 3.3 percent to $198.2 billion, while imports from China dropped 15.6 percent to $167.5 billion.

Notably, the U.S. goods deficit with China was at its lowest since 2009, totaling $111.5 billion through June.

Imports and Exports in Goods With Key Partners

The U.S. goods deficit with the European Union stemmed from pharmaceutical products ($51.98 billion), organic chemicals ($42.95 billion), and machinery ($24.04 billion).

With Mexico, the U.S. goods deficit was primarily concentrated in vehicles ($49.81 billion) and machinery ($39.38 billion).

The United States had an energy deficit of $44.95 billion with Canada.

The goods deficit with China was notable in electronics ($34.87 billion) and machinery ($25.13 billion). Other contributing factors included deficits in toys and games ($8.76 billion) and furniture and bedding ($7.32 billion).

More than half of the U.S. goods deficit with Switzerland was attributed to precious metals and jewelry ($27.37 billion).

Tariffs on Major Trading Partners

Trump’s reciprocal tariffs on almost 70 countries went into effect on Aug. 7. Under an executive order, tariff rates on imported goods range from 10 percent to 41 percent, depending on whether the United States has a trade deficit or surplus with that nation.

The White House stated that Trump uses tariffs to address growing U.S. goods trade deficits and ensure fair trade relationships to benefit American workers, farmers, and manufacturers. Years of unsustainable trade deficits have threatened both the economy and national security, it said.

The new reciprocal tariffs affect numerous countries, with rates varying based on the trade relationship. Key rates include 15 percent for the European Union, South Korea, and Japan; 20 percent for Vietnam and Taiwan; 30 percent for China under a 90-day tariff pause; and 39 percent for Switzerland.

In addition to trade, Trump is also using tariffs to pressure countries over issues like drug trafficking, digital service taxes, and Russian oil.

In late July, Trump agreed to a 90-day extension with Mexico, delaying any potential additional tariffs. However, the current tariff regime—50 percent levies on steel, aluminum, and copper, and a 25 percent tariff on automobiles—remains in effect.

Canada faces a 35 percent tariff, while some goods covered by the United States–Mexico–Canada Agreement receive preferential treatment. Goods transshipped to evade tariffs will be subject to a transshipment tariff of 40 percent.

India faces a 50 percent tariff, the largest imposed on U.S. trading partners, with half of it applied as a sanction for buying Russian oil.